Money & Banking

Forensic audit shows no fraud: Reliance Home Finance

Our Bureau Mumbai | Updated on January 12, 2020 Published on January 12, 2020

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Asks banks to fast-track debt resolution

A forensic audit of the troubled Reliance Home Finance has revealed no adverse findings on any fraud or diversion of funds and has confirmed the potential group entities exposure through several intermediate unlisted entities at ₹7,984 crore.

With the forensic audit now completed, Reliance Home Finance (RHF) has requested bankers to fast-track the debt resolution plan under ‘change of management and control’, the company said in a statement on Sunday.

As part of the Debt Resolution process, the lenders had appointed Grant Thornton in August 2019 for forensic audit with the specific mandate to report on any diversion or siphoning of funds, embezzlement or fraud by the promoter, company or its employees.

“The forensic report has confirmed the potential group entities exposure through several intermediate unlisted entities at ₹7,984 crore (including interest), which the company had voluntarily disclosed even before the commencement of forensic audit to its auditors, regulators, lenders, and also in the latest annual financial statements that were duly approved by the shareholders,” RHF said in the statement.

The company said it had “transparently” submitted all details to its auditors, regulators, lenders, and also in the latest annual financial statements that the outstanding ₹7,984 crore was used by the potential group entities only for making payments of principal repayment and interest to banks, financial institutions, NBFCs, NCD holders. “There is no adverse finding in this regard either, in the forensic audit report,” it stressed.

The other findings are limited to the alleged regulatory anomalies regarding the group exposure and limit for non-housing loan portfolio and deviation from certain policies and procedures, it said.

The National Housing Bank was already provided all these details and it has imposed a penalty and directed RHF to increase the housing loan disbursements and reduce corporate exposure.

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Published on January 12, 2020
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